The "Are we the baddies?" meme originates from a 2006 sketch by the British comedy duo Mitchell and Webb in their show "That Mitchell and Webb Look." In the sketch, two Nazi officers begin to question their own morality when they notice the skulls on their uniforms, leading one to ask, "Are we the baddies?" This line humorously captures the moment of self-awareness about being on the "wrong" side.

The meme took off nearly a decade later, used on the internet to express situations where people or groups start to question if their actions or causes might actually be harmful or wrong. It became especially popular as a reaction image in political and social contexts, notably during events like Brexit and the Trump presidency, symbolizing doubt about the righteousness of one's own side or actions.

In essence, the meme is used to express humorous yet thoughtful introspection about moral ambiguity and self-questioning in various situations.